ZeroHedge.com reports on the election of Shinzo Abe, Japan’s once (2006-2007) and now current Prime Minister.
“Dishonest Abe” as The Hedge calls him has promised to increase easing (printing) from the Bank of Japan, and to engage in an extensive infrastructure effort in hopes that the Keynesian insanity that Japan has engaged in for 2 decades will finally work. Japan just needs a lot more monetary insanity.
It appears, however, that what Abe likely will do is push Japan over the edge, at least that is what the guys at ZeroHedge.com think.
One thing appears certain: Japan, which is the grand Keynesian experiment in keeping bond yields in check even as sovereign debt/GDP is approaching 250%, may have some trouble with the coolness and calmness of bond investors now that Abe has even threatened with making the BOJ a branch of the government, setting 3% inflation targets, and outright monetizing the debt (without even the courtesy of semantical coverage).